1. Roosevelt and The New Deal
The First New Deal (Section 1)

2. Roosevelt’s Rise to Power
Cousin of Theodore Roosevelt
Intensively competitive and liked to be in control
His charming personality, deep rich voice, and wide smile expressed confidence and optimism
His personality was made for a life in politics

3. Roosevelts Political Career (Early On)
Elected to the New York State Senate in 1910
Earned a reputation as a progressive reformer
1920 he ran on the Democratic Ticket as the Vice President, but was unsuccessful

4. Polio Dreaded paralyzing disease
Although there was no cure he refused to give up and began a vigorous exercise program to restore muscle control
He wore heavy steel braces on his legs, he was able to seem to walk short distances by leaning on a cane and someone’s arm, and swinging his legs forward from his hips

5. Election Won the election of 1928 to become Governor of New York
Roosevelt’s popularity in NY paved the way for his presidential nomination in 1932
Americans saw in him hope and optimism, despite the tough economic times

6. When FDR became president be promised decisive gov’t action to fight the depression
FDR believed the gov’t should use deficit spending (spending that causes debt) to stimulate the economy

7. The First New Deal

8. New Deal Programs The New Deal focused on the three “Rs”
Relief Relief checks and job programs to lower unemployment
Recovery Programs to stimulate agriculture, industry, and the economy to end the depression
Reform Programs to correct problems in the economy and prevent future depressions

9. FDR used the power of the radio to communicate to the American people the steps the government was taking to address the problems of the depression
FDR’s “fireside chats” used simple, clear language to explain New Deal programs
These weekly radio addresses gave people confidence that the government was actively fighting the Great Depression

10. The Hundred Days
“The country needs bold, persistent experimentation………above all, try something”
The new president sent bill after bill to congress
Within Roosevelts first 100 days Congress passed 15 major acts to resolve the economic crisis
These 15 acts are considered the first new deal

11. A Divided Administration
Roosevelt deliberately chose advisors who disagreed with one another, in order to hear many different points of view
Roosevelt depended upon his advisors for new ideas

12. FDR’s first action was to address the bank crisis
By 1933, 25,000 banks had failed and the USA was in a complete financial collapse
FDR declared a four-day “bank holiday”: all banks were closed and inspected by federal regulators to determine which banks were healthy…
…Only healthy banks could reopen after the bank holiday

13. Banks and Debt Relief
He believed he had to restore people’s confidence in the banking system
The Emergency Banking Relief Act
“I assure you that it is safer to keep your money in a reopened bank than under the mattress”

14. The FDIC and SEC The Securities Act of 1933
Required companies that sold stock and bonds to provide complete and truthful information to investors
The Securities and Exchange Commission
Created to regulate the stock market and regulate fraud
The Federal Deposit Insurance Corporation
Provide government insurance for bank deposits
Increased public confidence in the banking system
The Glass Steagall Banking Act
Separated commercial banking from investment banking
Commercial banks handle everyday transactions and cold no longer risk depositors money through stock speculation

15. Mortgage and Debt Relief
There was a deep fear by many Americans that they would lose their homes and farms
Roosevelt Responded with the Home Owners’ Loans Corporation:
The government bought the mortgages of home owners who were behind in their payments
The corporation would then restructure the loans with longer repayment terms and lower interest rates

16. Relief Programs

17. The government helped relieve unemployment by creating jobs
The Civilian Conservation Corps (CCC) was a work program for young men aged years old…
The CCC built roads, parks, soil erosion project, and employed 3 million men

18. The government helped relieve unemployment by creating jobs
The Public Works Admin (PWA) hired 2 million to build airports, dams, schools, hospitals, parks
The PWA funded the construction of more than 34,000 projects, including airports, electricity-generating dams, and aircraft carriers; and seventy percent of the new schools and one third of the hospitals built during that time

19. Success of the First New Deal
During his first year in office Roosevelt convinced Congress to pass an astonishing array of legislation
The first new deal did not restore prosperity, but it reflected Roosevelt’s zeal for action and his willingness to experiment
Banks were reopened, many people retained their homes/farms, and more people were employed
The most important aspect of FDR’s First New Deal was a change in the spirit of the American people